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One-rate auto insurers can own the future

By Jason Polayes  |  August 15, 2019

Digital transformation can play a key role in boosting the number of customers who make a seamless journey from quote start to bind.

Customers are more likely to stay on that journey if it’s shorter and smoother than what they’ve experienced before. A key element of that improved buyer experience can be a quote that’s right the first time, sparing customers the often-unpleasant surprises of “Rate Call 2” or even “Rate Call 3.”

One-rate insurers can change business as usual and gain significant and lasting competitive advantages, including greater policyholder satisfaction and more accurate underwriting and rating. That’s achievable—through any sales channel—by bringing decision points forward in the application and quote workflow, tailoring business rules to each transaction, and aligning the quote throughput with risk appetite.

Leading digital auto insurers are already growing twice as fast as competitors operating under traditional models,1 with acquisition costs that are one-third less,2 and combined ratios that are six points better.3 Outdated practices that trade underwriting integrity for expense control may lead laggards to cede the most desirable business to digital leaders.

Need for speed

Leaders in the InsurTech revolution perceive the need for speed, as consumers measure their online buying experiences against the high benchmarks they encounter elsewhere.

Insurtech quoting platforms can gain a competitive advantage if they:

  • are powered by data that guides the rate call to keep customers in the pipeline
  • bring data forward in a scalable workflow that enables instant quotes
  • are able to help insurers exceed expectations in the customer’s digital world

A platform such as Verisk’s LightSpeed™ can use unmatched data resources and groundbreaking predictive analytics to streamline the customer experience, shorten processing time, and cut costs.

  1. McKinsey & Company, Making Digital Strategy a Reality in Insurance, 2016
  2. William Blair & Company, analysis of company and SNL financial data, direct insurers, 2015
  3. McKinsey & Company, Making Digital Strategy a Reality in Insurance, 2016

Jason Polayes is a senior product manager at ISO. You can contact him at Jason.Polayes@verisk.com.

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